Summary

KEY FINDINGS
The China flow battery market size is valued at $120.80 million as of 2025 and is expected to reach $440.82 million by 2032, progressing with a CAGR of 20.31% during the forecast years, 2025-2032.
China's flow battery market surges forward, driven by aggressive government mandates under the 14th Five-Year Plan targeting carbon neutrality by 2060. National energy storage deployment goals accelerate installations across renewable-heavy provinces like Xinjiang and Sichuan. Meanwhile, domestic vanadium supply chains provide cost advantages that international competitors struggle to match. State-owned utilities and grid operators increasingly favor flow batteries for long-duration storage applications exceeding four hours.

MARKET INSIGHTS
Additionally, provincial subsidies and preferential grid connection policies remove financial barriers for large-scale projects. The government's ban on certain lithium battery chemistries for grid storage due to safety concerns further propels flow battery adoption. Manufacturers benefit from economies of scale as production capacity expands rapidly, with planned investments exceeding CNY 33.7 billion in 2024 alone, according to industry reports.
Furthermore, reports reveal that nearly 30 projects of 100MWh scale or larger are registered or in planning stages nationwide, totaling over 4GW/18GWh capacity. Technological breakthroughs in stack design and electrolyte production reduce system costs by 30-40% compared to earlier generation systems. This combination of policy support, resource advantages, and technical innovation positions China as the global leader in flow battery deployment and manufacturing capacity through 2032.
China dominates global flow battery installations with landmark projects demonstrating commercial viability at unprecedented scales. The recently completed 200MW/1GWh vanadium redox flow battery system in Jimusar, Xinjiang, represents the world's largest operational project of its kind. Backed by China Huaneng Group, this CNY 3.8 billion facility pairs with a 1GW solar farm to provide five hours of continuous discharge capacity. Provincial governments in renewable-rich regions like Inner Mongolia and Hebei launch megawatt-scale demonstration projects that validate technical performance and economic models.
State Grid Corporation initiatives in these regions test flow batteries for grid stabilization, renewable integration, and peak demand management. Moreover, China's manufacturing ecosystem supports rapid scaling with companies like Dalian Rongke Power, Shanghai Electric Energy Storage, and Pu Neng establishing GWh-scale production facilities. Domestic vanadium producers, including Panzhihua Iron & Steel and Hebei Iron & Steel Group, vertically integrate into electrolyte manufacturing, securing raw material supply chains.
The Sichuan Provincial Government issued China's first vanadium battery industry-specific policy in May 2024, targeting 15-20% market penetration in the storage field by 2025. This policy framework includes joint investment incentives for renewable developers and battery manufacturers, plus preferential profit-sharing mechanisms through market-based approaches. Commercial procurement accelerates as major state-owned enterprises conduct GWh-scale tenders with increasingly competitive pricing below CNY 2.5 per Wh.
China holds nearly half of the world's grid-scale battery storage capacity, expanding from 7.8GW in 2022 to 27.1GW in 2024, according to recent data. Flow batteries capture growing market share within this expansion despite lithium-ion dominance. Xinjiang emerges as a focal point for 100MWh-scale flow battery projects driven by massive renewable energy bases requiring long-duration storage. The region aims to connect over 20GW of new energy storage to the grid by 2025 as part of becoming a national clean energy hub. Sichuan Province leverages its position as China's largest vanadium resource holder to build integrated supply chains from mining through battery manufacturing.
Key projects like the 300MW/1.8GWh storage project in Lijiang, Yunnan, and the 250MW/1GWh installation in Chabuchaer County, Xinjiang, demonstrate industrial-scale deployment capabilities. China Nuclear Power Corporation subsidiaries show particular interest in flow battery technology, organizing multiple GWh-scale procurement tenders since 2022. State Power Investment Corporation awarded contracts for 1GWh systems in September 2023, with Shanghai Electric and other domestic manufacturers winning bids.
Technical advancements from research institutions like the Dalian Institute of Chemical Physics push performance boundaries with 70kW-level stacks achieving 40% cost reductions compared to previous 30kW designs. Manufacturing investments target 48GWh annual production capacity by the end of 2024, supported by industrial parks in Baotou and Panzhihua specializing in all-vanadium flow battery production. Export strategies emerge as Chinese manufacturers eye Southeast Asian and African markets where grid infrastructure development creates demand for reliable long-duration storage solutions.

SEGMENTATION ANALYSIS
The China flow battery market is segmented into offering, battery type, material, ownership, storage, and application. The application segment is further classified into grid/utility, commercial and industrial, EV charging station, and other applications.
Commercial and industrial applications gain substantial traction as businesses recognize flow batteries' value proposition for peak shaving and energy cost optimization. Manufacturing facilities across Guangdong, Jiangsu, and Zhejiang provinces deploy flow battery systems to manage peak demand charges that represent 30-40% of total electricity expenses. These installations charge during off-peak hours when rates drop, then discharge during expensive peak periods to reduce bills by 20-30% according to operator reports.
Industrial sites value the non-flammable water-based electrolytes that flow batteries use, addressing safety concerns that lithium-ion systems raise in facilities handling sensitive processes or storing valuable inventory. Chemical plants, pharmaceutical manufacturers, and electronics assembly operations consequently adopt vanadium redox systems with confidence. Business parks increasingly incorporate flow batteries into microgrid designs that integrate rooftop solar generation with long-duration storage. Textile manufacturers in Jiangsu Province exemplify this approach by capturing midday solar surplus in flow batteries, then discharging during evening production shifts when solar output drops but manufacturing continues.
Commercial buildings in Shanghai and Beijing deploy these systems to smooth morning and evening demand spikes that coincide with high occupancy periods. Shopping malls particularly benefit as they require uninterrupted power for refrigeration, lighting, and HVAC while seeking to minimize expensive peak rate exposure. Data centers represent emerging opportunities as these facilities demand absolute reliability alongside massive energy consumption. Flow batteries deliver dual value by providing backup power during outages while optimizing grid electricity costs through strategic charging patterns.

COMPETITIVE INSIGHTS
Some of the top players operating in the China flow battery market include Dalian Rongke Power Co Ltd, Shanghai Electric Energy Storage, Pu Neng (Prudent Energy), Great Power Energy & Technology Co Ltd, etc.
Shanghai Electric Energy Storage establishes itself as a leading domestic flow battery manufacturer focused exclusively on vanadium redox technology development and commercialization. The company operates as a specialized subsidiary of Shanghai Electric Group, one of China's largest industrial conglomerates with extensive experience in power generation equipment and energy infrastructure.
Shanghai Electric Energy Storage secured CNY 400 million in Series A financing during 2023, pushing post-investment valuation above CNY 2.2 billion and demonstrating strong investor confidence in the flow battery market potential. Headquarters in Shanghai positions the company strategically near major manufacturing hubs, research institutions, and target customers in the Yangtze River Delta economic zone.
Also, the company develops and manufactures complete vanadium redox flow battery systems spanning from kW-scale units for commercial applications to multi-MW installations for utility projects. Engineering teams hold multiple patents covering stack design, electrolyte preparation methods, and system integration approaches that provide technical differentiation.

COMPANY PROFILES
1. DALIAN RONGKE POWER CO., LTD.
2. VRB ENERGY
3. INVINITY ENERGY SYSTEMS
4. SCHMID GROUP
5. PU NENG (PRUDENT ENERGY)
6. GREAT POWER ENERGY & TECHNOLOGY CO., LTD.
7. SHANGHAI ELECTRIC ENERGY STORAGE

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Table of Contents

1. RESEARCH SCOPE & METHODOLOGY
1.1. STUDY OBJECTIVES
1.2. METHODOLOGY
1.3. ASSUMPTIONS & LIMITATIONS
2. EXECUTIVE SUMMARY
2.1. MARKET SIZE & FORECAST
2.2. MARKET OVERVIEW
2.3. SCOPE OF STUDY
2.4. CRISIS SCENARIO ANALYSIS
2.5. MAJOR MARKET FINDINGS
2.5.1. CHINA LEADS GLOBAL FLOW BATTERY DEPLOYMENTS WITH STRONG GOVERNMENT SUPPORT AND LARGE-SCALE PILOT PROJECTS
2.5.2. DOMESTIC MANUFACTURERS SUCH AS RONGKE POWER AND DONGFANG ELECTRIC DOMINATE THE LOCAL SUPPLY CHAIN
2.5.3. NATIONAL ENERGY STORAGE TARGETS UNDER THE 14TH FIVE-YEAR PLAN DRIVE RAPID MARKET EXPANSION
2.5.4. CHINA’S FOCUS ON GRID-SCALE STORAGE INTEGRATION FOR WIND AND SOLAR PROJECTS ACCELERATES INSTALLATIONS
3. MARKET DYNAMICS
3.1. KEY DRIVERS
3.1.1. STRONG GOVERNMENT POLICIES PROMOTING ENERGY STORAGE UNDER CARBON NEUTRALITY GOALS
3.1.2. LARGE DOMESTIC SUPPLY OF VANADIUM SUPPORTS LOWER RAW MATERIAL COSTS
3.1.3. RISING RENEWABLE ENERGY CAPACITY CREATES DEMAND FOR LONG-DURATION STORAGE
3.1.4. INCREASING INVESTMENTS IN INDUSTRIAL AND GRID MODERNIZATION PROJECTS
3.2. KEY RESTRAINTS
3.2.1. LIMITED STANDARDIZATION AND REGULATORY FRAMEWORK FOR FLOW BATTERY INTERCONNECTION
3.2.2. HIGH INITIAL CAPITAL COSTS COMPARED TO LITHIUM-ION SYSTEMS
3.2.3. UNCERTAIN RECYCLING AND MATERIAL REUSE MECHANISMS FOR VANADIUM ELECTROLYTE
3.2.4. TECHNOLOGICAL COMPETITION FROM ADVANCED LITHIUM AND SODIUM-ION STORAGE SOLUTIONS
4. KEY ANALYTICS
4.1. KEY MARKET TRENDS
4.1.1. STATE-GRID-LED PROJECTS IN INNER MONGOLIA AND HEBEI DEMONSTRATE MEGAWATT-SCALE DEPLOYMENTS
4.1.2. DOMESTIC PARTNERSHIPS FORM BETWEEN VANADIUM SUPPLIERS AND BATTERY DEVELOPERS
4.1.3. EXPORT-FOCUSED STRATEGIES EMERGE FOR SUPPLYING FLOW BATTERIES TO SOUTHEAST ASIA AND AFRICA
4.1.4. GOVERNMENT-BACKED RESEARCH INCREASES FOCUS ON ELECTROLYTE RECYCLING AND COST REDUCTION
4.2. PORTER’S FIVE FORCES ANALYSIS
4.2.1. BUYERS POWER
4.2.2. SUPPLIERS POWER
4.2.3. SUBSTITUTION
4.2.4. NEW ENTRANTS
4.2.5. INDUSTRY RIVALRY
4.3. GROWTH PROSPECT MAPPING
4.3.1. GROWTH PROSPECT MAPPING FOR CHINA
4.4. MARKET MATURITY ANALYSIS
4.5. MARKET CONCENTRATION ANALYSIS
4.6. VALUE CHAIN ANALYSIS
4.6.1. RAW MATERIAL SUPPLIERS
4.6.2. ELECTROLYTE MANUFACTURERS
4.6.3. MEMBRANE AND STACK PRODUCERS
4.6.4. SYSTEM INTEGRATORS
4.6.5. PROJECT DEVELOPERS
4.6.6. UTILITY AND COMMERCIAL END USERS
4.7. KEY BUYING CRITERIA
4.7.1. COST PER KWH
4.7.2. CYCLE LIFE
4.7.3. SCALABILITY
4.7.4. MAINTENANCE REQUIREMENTS
4.8. REGULATORY FRAMEWORK
5. FLOW BATTERY MARKET BY OFFERING
5.1. ENERGY STORAGE SYSTEM
5.1.1. MARKET FORECAST FIGURE
5.1.2. SEGMENT ANALYSIS
5.2. BATTERY
5.2.1. MARKET FORECAST FIGURE
5.2.2. SEGMENT ANALYSIS
5.3. SERVICE
5.3.1. MARKET FORECAST FIGURE
5.3.2. SEGMENT ANALYSIS
6. FLOW BATTERY MARKET BY BATTERY TYPE
6.1. REDOX
6.1.1. MARKET FORECAST FIGURE
6.1.2. SEGMENT ANALYSIS
6.2. HYBRID
6.2.1. MARKET FORECAST FIGURE
6.2.2. SEGMENT ANALYSIS
7. FLOW BATTERY MARKET BY MATERIAL
7.1. VANADIUM
7.1.1. MARKET FORECAST FIGURE
7.1.2. SEGMENT ANALYSIS
7.2. ZINC-BROMINE
7.2.1. MARKET FORECAST FIGURE
7.2.2. SEGMENT ANALYSIS
7.3. IRON
7.3.1. MARKET FORECAST FIGURE
7.3.2. SEGMENT ANALYSIS
7.4. OTHER MATERIALS
7.4.1. MARKET FORECAST FIGURE
7.4.2. SEGMENT ANALYSIS
8. FLOW BATTERY MARKET BY OWNERSHIP
8.1. CUSTOMER-OWNED
8.1.1. MARKET FORECAST FIGURE
8.1.2. SEGMENT ANALYSIS
8.2. THIRD-PARTY-OWNED
8.2.1. MARKET FORECAST FIGURE
8.2.2. SEGMENT ANALYSIS
8.3. GRID/UTILITY-OWNED
8.3.1. MARKET FORECAST FIGURE
8.3.2. SEGMENT ANALYSIS
9. FLOW BATTERY MARKET BY STORAGE
9.1. LARGE-SCALE
9.1.1. MARKET FORECAST FIGURE
9.1.2. SEGMENT ANALYSIS
9.2. SMALL-SCALE
9.2.1. MARKET FORECAST FIGURE
9.2.2. SEGMENT ANALYSIS
10. FLOW BATTERY MARKET BY APPLICATION
10.1. GRID/UTILITY
10.1.1. MARKET FORECAST FIGURE
10.1.2. SEGMENT ANALYSIS
10.2. COMMERCIAL AND INDUSTRIAL
10.2.1. MARKET FORECAST FIGURE
10.2.2. SEGMENT ANALYSIS
10.3. EV CHARGING STATION
10.3.1. MARKET FORECAST FIGURE
10.3.2. SEGMENT ANALYSIS
10.4. OTHER APPLICATIONS
10.4.1. MARKET FORECAST FIGURE
10.4.2. SEGMENT ANALYSIS
11. COMPETITIVE LANDSCAPE
11.1. KEY STRATEGIC DEVELOPMENTS
11.1.1. MERGERS & ACQUISITIONS
11.1.2. PRODUCT LAUNCHES & DEVELOPMENTS
11.1.3. PARTNERSHIPS & AGREEMENTS
11.1.4. BUSINESS EXPANSIONS & DIVESTITURES
11.2. COMPANY PROFILES
11.2.1. DALIAN RONGKE POWER CO LTD
11.2.1.1. COMPANY OVERVIEW
11.2.1.2. PRODUCTS LIST
11.2.1.3. STRENGTHS & CHALLENGES
11.2.2. VRB ENERGY
11.2.2.1. COMPANY OVERVIEW
11.2.2.2. PRODUCTS LIST
11.2.2.3. STRENGTHS & CHALLENGES
11.2.3. INVINITY ENERGY SYSTEMS
11.2.3.1. COMPANY OVERVIEW
11.2.3.2. PRODUCTS LIST
11.2.3.3. STRENGTHS & CHALLENGES
11.2.4. SCHMID GROUP
11.2.4.1. COMPANY OVERVIEW
11.2.4.2. PRODUCTS LIST
11.2.4.3. STRENGTHS & CHALLENGES
11.2.5. PU NENG (PRUDENT ENERGY)
11.2.5.1. COMPANY OVERVIEW
11.2.5.2. PRODUCTS LIST
11.2.5.3. STRENGTHS & CHALLENGES
11.2.6. GREAT POWER ENERGY & TECHNOLOGY CO LTD
11.2.6.1. COMPANY OVERVIEW
11.2.6.2. PRODUCTS LIST
11.2.6.3. STRENGTHS & CHALLENGES
11.2.7. SHANGHAI ELECTRIC ENERGY STORAGE
11.2.7.1. COMPANY OVERVIEW
11.2.7.2. PRODUCTS LIST
11.2.7.3. STRENGTHS & CHALLENGES
















LIST OF TABLES
TABLE 1: MARKET SNAPSHOT – FLOW BATTERY
TABLE 2: MARKET BY OFFERING, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 3: MARKET BY OFFERING, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 4: MARKET BY BATTERY TYPE, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 5: MARKET BY BATTERY TYPE, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 6: MARKET BY MATERIAL, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 7: MARKET BY MATERIAL, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 8: MARKET BY OWNERSHIP, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 9: MARKET BY OWNERSHIP, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 10: MARKET BY STORAGE, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 11: MARKET BY STORAGE, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 12: MARKET BY APPLICATION, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 13: MARKET BY APPLICATION, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 14: KEY PLAYERS OPERATING IN THE CHINA MARKET
TABLE 15: LIST OF MERGERS & ACQUISITIONS
TABLE 16: LIST OF PRODUCT LAUNCHES & DEVELOPMENTS
TABLE 17: LIST OF PARTNERSHIPS & AGREEMENTS
TABLE 18: LIST OF BUSINESS EXPANSIONS & DIVESTITURES
LIST OF FIGURES
FIGURE 1: KEY MARKET TRENDS
FIGURE 2: PORTER’S FIVE FORCES ANALYSIS
FIGURE 3: GROWTH PROSPECT MAPPING FOR CHINA
FIGURE 4: MARKET MATURITY ANALYSIS
FIGURE 5: MARKET CONCENTRATION ANALYSIS
FIGURE 6: VALUE CHAIN ANALYSIS
FIGURE 7: KEY BUYING CRITERIA
FIGURE 8: SEGMENT GROWTH POTENTIAL, BY OFFERING, IN 2024
FIGURE 9: ENERGY STORAGE SYSTEM MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 10: BATTERY MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 11: SERVICE MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 12: MARKET GROWTH POTENTIAL, BY BATTERY TYPE, IN 2024
FIGURE 13: REDOX MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 14: HYBRID MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 15: SEGMENT GROWTH POTENTIAL, BY MATERIAL, IN 2024
FIGURE 16: VANADIUM MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 17: ZINC-BROMINE MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 18: IRON MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 19: OTHER MATERIALS MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 20: SEGMENT GROWTH POTENTIAL, BY OWNERSHIP, IN 2024
FIGURE 21: CUSTOMER-OWNED MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 22: THIRD-PARTY-OWNED MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 23: GRID/UTILITY-OWNED MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 24: SEGMENT GROWTH POTENTIAL, BY STORAGE, IN 2024
FIGURE 25: LARGE-SCALE MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 26: SMALL-SCALE MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 27: SEGMENT GROWTH POTENTIAL, BY APPLICATION, IN 2024
FIGURE 28: GRID/UTILITY MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 29: COMMERCIAL AND INDUSTRIAL MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 30: EV CHARGING STATION MARKET SIZE, 2025-2032 (IN $ MILLION)
FIGURE 31: OTHER APPLICATIONS MARKET SIZE, 2025-2032 (IN $ MILLION)

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List of Tables/Graphs

LIST OF TABLES
TABLE 1: MARKET SNAPSHOT – FLOW BATTERY
TABLE 2: MARKET BY OFFERING, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 3: MARKET BY OFFERING, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 4: MARKET BY BATTERY TYPE, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 5: MARKET BY BATTERY TYPE, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 6: MARKET BY MATERIAL, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 7: MARKET BY MATERIAL, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 8: MARKET BY OWNERSHIP, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 9: MARKET BY OWNERSHIP, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 10: MARKET BY STORAGE, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 11: MARKET BY STORAGE, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 12: MARKET BY APPLICATION, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 13: MARKET BY APPLICATION, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 14: KEY PLAYERS OPERATING IN THE CHINA MARKET
TABLE 15: LIST OF MERGERS & ACQUISITIONS
TABLE 16: LIST OF PRODUCT LAUNCHES & DEVELOPMENTS
TABLE 17: LIST OF PARTNERSHIPS & AGREEMENTS
TABLE 18: LIST OF BUSINESS EXPANSIONS & DIVESTITURES